In this article, we discuss 5 stocks to sell according to billionaire Louis Bacon. If you want our detailed analysis of these stocks, go directly to 8 Stocks To Sell According To Billionaire Louis Bacon.
5. Pinduoduo Inc. (NASDAQ:PDD)
Number of Hedge Fund Holders: 34
Pinduoduo Inc. (NASDAQ:PDD) operates a Chinese agriculture-based technology platform that focuses on connecting farmers and distributors with consumers directly via online shopping experiences. On January 14, DBS Bank upgraded Pinduoduo Inc. (NASDAQ:PDD) to Buy from Hold with a $96 price target.
Louis Bacon bought 530,000 Pinduoduo Inc. (NASDAQ:PDD) shares in Q3 2021, worth over $48 million, representing 0.73% of the billionaire’s 13F securities. He sold off his shares completely in Q4 2021.
Among the hedge funds tracked by Insider Monkey, 34 funds were bullish on Pinduoduo Inc. (NASDAQ:PDD) in the fourth quarter of 2021, with stakes amounting to $2.6 billion, down from 49 funds in the quarter earlier, holding stakes in Pinduoduo Inc. (NASDAQ:PDD) worth $3.5 billion. Billionaire Chase Coleman’s Tiger Global Management is the largest Pinduoduo Inc. (NASDAQ:PDD) stakeholder, owning 15.7 million shares, valued at $920.2 million.
Here is what Baillie Gifford has to say about Pinduoduo Inc. (NASDAQ:PDD) in its Q2 2021 investor letter:
“As many countries enjoy a relaxation of Covid restrictions, Mr Market is focussed on short-term beneficiaries of ‘the pleasure after the plague’. There are interesting parallels with the Roaring 20s here, but to our minds, they extend beyond post-pandemic hedonism. Much of the new wealth created in the 1920s was patchily distributed and accompanied by a pervasive sense that the older generation had let down younger people. In 1920, John F. Carter, an irate 23-year-old wrote “the older generation had certainly pretty well ruined this world before passing it on to us. We have been forced to live in an atmosphere of ‘tomorrow we die,’ and so, naturally, we drank and were merry.”
In a similar vein, some of the greatest Growth opportunities are materializing from the companies that are shifting humankind towards more sustainable ways of consuming by driving efficiencies and eliminating surplus. Pinduoduo’s ‘farm to table’ platform is one example – cutting out huge waste in farm produce and short circuiting layers of infrastructure by matching Chinese food supply and demand through a group buying model. In a similar vein, Meituan is well on the way to developing China’s primary ‘Software as a Service’ ecosystem for food distribution which we believe has a strong chance of replacing wasteful wet markets as the primary channel for transacting in produce.
Pinduoduo’s share price pulled back following news that Chinese regulators are investigating possible anti-competitive activities by the country’s large online companies. However, Pinduoduo appears well placed to navigate such regulatory scrutiny in the long-term, helped in part by its community-buying business model that benefits consumers, manufacturers and farmers alike. Its business fundamentals are stellar– the company remains the largest Chinese e-commerce platform, with over 820 million annual active users (surpassing Alibaba and JD.com), while revenue growth increased by 239% over the previous year.”
